Here's what is costlier now! Will Budget provide relief?

Here's what is costlier now! Will Budget provide relief?

The Budget is just round the corner. And people are looking to Finance Minister Pranab Mukherjee to put some more money into their hands in the form of tax breaks to get some relief from bone-crushing inflation.

But will the finance minister's Budget proposals soothe the frayed nerves of the Indian populace? With prices of almost every commodity going through the roof, the burden on the beleaguered common man is unbearable. So can the finance minister wave his magic wand and provide much-needed relief to the aam aadmi or will we again be doomed to fend for ourselves and hope for the best?

There is no end to rising food prices in India. Food inflation rose to 15.57 per cent for the period ended January 15, on account of spiraling vegetable prices. Vegetable prices rose by 67.07 per cent on an annual basis.

Onions have turned out to be the costliest vegetable. It rose by a whopping 111.58 per cent year-on-year, thus, showing that government initiatives like export ban were not effective.

On an annual basis, prices of fruits went up by 16.40 per cent while milk became expensive by 12.44 per cent. Prices of egg, meat and fish went up by 13.58 per cent year-on-year.

But vegetables and cereals are not the only products that are pinching people.

Here's what is costlier now! Will Budget provide relief?

Volkswagen has already increased the prices of its Polo hatchback by a minimum of 2.9 per cent. Mahindra and Mahindra, Maruti Suzuki, Tata Motors have also hiked car prices.

Tata Motors raised prices of some of its passenger vehicles, including the Indica, Indigo, Sumo Grande Safari and Xenon, in the range of Rs 3,000-15,000. The company also raised commercial vehicles prices by Rs 1,500-30,000 from January 1.

Here's what is costlier now! Will Budget provide relief?

Gold prices in 2011 are expected to be 19 per cent higher than last year. According to experts, surveyed by the London Bullion Metals Association (LBMA), the average gold price forecast was $1,457 per ounce.

Looking back at last year's survey, the average gold price prediction of $1,199 per ounce, which was 23.4 per cent higher than the 2009 price, was just $26 lower than the actual average price of $1,225 per ounce.